Dell 2014 Gender-GEDI Research Shows More Support Needed to Enable Female Entrepreneurship Development Worldwide

ROUND ROCK, Texas--(BUSINESSWIRE)--
Dell today announced the results of the second annual Gender-Global
Entrepreneurship and Development Index (GEDI), revealing that more than
75 percent of countries surveyed are not meeting the most fundamental
conditions required for female entrepreneurs to prosper.

The United States, Australia and newcomer Sweden named best places for female entrepreneurship (Graphic:Business Wire)

Commissioned by Dell, the Gender-GEDI is the world’s only diagnostic
tool that comprehensively measures high potential female
entrepreneurship by analyzing entrepreneurial ecosystems, business
environments and individual aspirations across 30 developed and
developing economies spanning multiple regions, providing a systematic
approach that allows cross-country comparison, benchmarking, and
identifies data gaps. The goal of the research is not to provide a
headcount of female entrepreneurs worldwide, rather it is
future-oriented and designed to be a tool to guide leaders, policymakers
and law-makers in identifying country-wide strengths and weaknesses and
developing strategies to create more favorable conditions in their
countries to enable businesses founded by women to thrive.

“At Dell, we are committed to empowering people everywhere with
technology solutions to fulfill their ambitions and reach their full
potential,” said Karen Quintos, senior vice president and chief
marketing officer, Dell. “The Gender-GEDI Index provides key insights
designed to help countries advance female entrepreneurship and
ultimately bolster the global economy. We believe awareness of the
current landscape for women entrepreneurship is the first step toward
change.”

To inform and refine the research parameters of the Gender-GEDI, an
expert panel was convened, comprised of leading change agents from the
U.S. Department of State and global organizations such as the
International Finance Corporation (IFC), World Bank, Development
Alternatives Incorporated (DAI), Vital Voices, and WEConnect
International, many of whom have already began using the research as a
tool to inform policy and institute reform (examples available).

2014 Gender-GEDI Results

Among the 17 countries included in both the 2013 and 2014 Gender-GEDI
reports, four increased their rankings (Japan, Brazil, India, and United
Kingdom), four showed a decline (Malaysia, Egypt, Mexico and Morocco),
and the others ranked comparatively both years.

The highest performing countries in the 2014 Gender-GEDI rankings are
all OECD member countries with highly developed economies, and for the
second year in a row, the U.S. (83) and Australia (80) came out on top,
followed by Sweden (73), France and Germany (tied at 67), Chile (55),
the United Kingdom (54) and Poland (51). The remaining 23 of the 30
countries studied received an overall index score of less than 50 out of
100, indicating that many of the fundamental conditions for high
potential female entrepreneurship development are generally lacking in
the majority of countries.

“To harness the full potential of the low performing countries, the
Gender-GEDI results demonstrate that basic improvements are required in
terms of access to equal legal rights and education as well as
acceptance of women’s social and economic empowerment,” said Ruta Aidis,
project director for the Gender-GEDI. “For countries with moderate
scores, to improve their rankings, they should focus both on current
women’s enterprise development interventions and support as well as
basic improvements in the business-enabling environment.”

The 2014 Gender-GEDI demonstrates that top-performing countries are not
necessarily the ones with the highest GDP levels; rather they are those
who have committed to improving the conditions for female
entrepreneurship on several fronts simultaneously, and even those with
the highest scores still have room for improvement. While these
countries tend to have good business-enabling environments overall, they
could benefit from supporting programs designed to activate and
accelerate the growth of high-potential female entrepreneurs.

To provide tangible examples on how women entrepreneurs can overcome
challenges and maximize the opportunities flagged in the study, Dell
commissioned an e-book, Forget the Glass Ceiling: Build Your
Business Without One, featuring case studies of 10 women
entrepreneurs, which is available for download starting today on
Dell.com/women.

Gender-GEDI Rankings

Rank

Country

Score

Rank

Country

Score

Rank

Country

Score

1

United States

83

11-13

South Africa

42

21

Malaysia

32

2

Australia

80

11-13

South Korea

42

22

Jamaica

30

3

Sweden

73

11-13

China

42

23

Nigeria

29

4-5

France

67

14-15

Peru

40

24-25

Morocco

27

4-5

Germany

67

14-15

Japan

40

24-25

Ghana

27

6

Chile

55

16

Panama

39

26

India

26

7

United Kingdom

54

17

Thailand

38

27-28

Uganda

19

8

Poland

51

18-19

Turkey

36

27-28

Egypt

19

9

Spain

49

18-19

Russia

36

29

Bangladesh

17

10

Mexico

43

20

Brazil

35

30

Pakistan

11

Index Highlights

The Gender-GEDI is focused on the ways in which governments,
institutions and corporations can support the effort of improving
conditions for high-potential female entrepreneurship worldwide, and the
2014 results indicate that, across all nations, there is still much to
be done, but by increasing access to education, technology, capital and
networks, significant progress can be made.

Access to capital continues to be crucial. Access to a formal
bank account is critical for entrepreneurs, especially since it is a
necessary precursor to the financing (bank loans, credit lines, etc.)
that fuels business growth. However, in 14 of the 30 countries, 50
percent or more of the female population is unbanked, with the gender
disparities being highest in Turkey, where there is close to a 50
percent difference between men and women with bank accounts.
Worldwide, women also receive less outside funding for their
businesses than men.

Many industries remain male-dominated. Occupation crowding, or
the existence of ‘male’ and ‘female’ jobs in a country’s economy, not
only contributes to the gender wage gap but also results in the
concentration of women’s entrepreneurial activity within specific
sectors, which can be detrimental to fully utilizing a nation’s
capacity for innovation. Out of the 30 countries, only eight received
an overall balanced ratio across employment sectors, and in India and
Pakistan, formal employment is so highly sex segregated that no
employment sectors are balanced. Some countries and industries are
beginning to address these occupational inequalities through voluntary
quotas and targeted initiatives in the sectors that tend to
marginalize women as a result of their ‘macho lab coat, hard hat and
geek’ workplace cultures.

Female start-up activity is on the rise in emerging markets. Despite
being ranked as top performers and characterized by overall favorable
business environments, opportunity perception is fairly low in the
United States and Europe with less than one third of the female
population measured identifying business opportunities. In Africa,
this number reaches 69 percent. Even with challenges around access to
education and capital, female startup activity in the region is high
at 86 female to every 100 male startups. Ghana has more female
startups than male at a rate of 121 to 100. The Latin American and
Caribbean countries included in the Index also exhibit high rates,
with a regional average of 84 female to every 100 male startups.

More women are needed at the top. Even when the business
environment is right, social norms can affect general societal support
for women as entrepreneurs and their access to experiences as decision
makers and leaders. Local attitudes towards women in executive
positions can also effect whether women choose to take on these higher
roles and responsibilities. Only five countries have 40 percent or
more female managers (Jamaica, Ghana, Panama, United States and
Nigeria), and in four countries the percentage of women is 10 percent
or less: South Korea (10 percent), Turkey (10 percent), Japan (9
percent) and Pakistan (3 percent). While education forms the
foundation for high potential entrepreneurship, management experience
provides women with additional skills, experience and networks that
facilitate female entrepreneurship success.

Women’s rights must be addressed first. In 22 of the 30
countries included in the Index, married women have fewer rights than
married men, in 21 countries women lack the same access to employment
as men, and in eight countries women do not enjoy the same legal
access to property as men. A number of countries also limit women’s
access to public spaces through legal restrictions and discriminatory
practices. In order to foster female entrepreneurship, these countries
must first address these fundamental weaknesses and take steps towards
ensuring women equal rights.

The Index focuses on high potential female entrepreneurs who are defined
as ‘innovative, market-expanding and export-oriented.’ The Index
combines variables that measure agency and institutions in a composite
index in order to capture the multi-dimensional aspects of female
entrepreneurship development. Data comes from existing internationally
recognized sources such as the Global Entrepreneurship Monitor (GEM),
World Economic Forum (WEF), World Bank, United Nations Educational,
Scientific and Cultural Organization (UNESCO), International Labour
Organization (ILO), etc. The GEDI Institute is a non-profit research and
consulting firm based in Washington, D.C. that assists governments,
donor agencies, foundations, international assistance providers, and
global companies expand economic opportunities for individuals, build
future markets for societies, and propel economic development for
nations. It uses an innovative methodology to advance entrepreneurship,
thereby accelerating economic growth.

Methodology

The Gender GEDI Index's unique methodology brings together variables
that measure individuals and institutions in a composite index that
highlights issues relevant for high potential female entrepreneurship
development and growth. Thirty individual-level and institutional-level
dimensions are paired together into fifteen pillars that are further
divided into three main sub-indices: Entrepreneurial Environment,
Entrepreneurial Eco-System and Entrepreneurial Aspirations. The novel
Penalty for Bottleneck methodology is applied to the pillar scores so
that the ‘bottleneck’ (i.e. pillar with the lowest score) penalizes the
final country ranking. This approach encourages countries to address
their weakest areas first since it will have the greatest effect on
their final score.

About Dell

Dell Inc. listens to customers and delivers innovative technology and
services that give them the power to do more. As the visionary outcome
of a true entrepreneur, Dell is committed to help power the success of
entrepreneurs by developing technology solutions that help their
businesses increase productivity and grow. Through the Dell Women’s
Entrepreneur Network, Dell supports and nurtures a community of female
entrepreneurs by providing access to knowledge, networks, and capital.
Learn more at www.dell.com/women.

Trending Now

Quotes are real-time for NASDAQ, NYSE, and NYSEAmex when available. See also delay times for other exchanges. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.